| Maryland Protection of Homeowners in Foreclosure | | | | negotiations. |
| Act | | | | The best prevention against foreclosure in Maryland is |
| Anyone who is involved with homeowners in Maryland | | | | for Maryland homeowners to contact their lenders |
| that are 60 days late or later on their mortgage | | | | early on and discuss other options that may be |
| payments should educate themselves regarding the | | | | available to them to save their home from foreclosure. |
| Maryland Protection of Homeowners in Foreclosure | | | | Not asking for help and not communicating with the |
| Act. This includes Realtors, Investors and anyone who | | | | lender is a mistake that many borrowers make, and |
| is offering foreclosure consulting services. If such | | | | they end up losing their homes when they could have |
| persons are found to be in violation of the Act, they | | | | saved them. |
| are subject to stiff criminal penalties. Exempt are | | | | Foreclosure Process |
| attorneys and loan servicers, loss mitigation | | | | In Maryland, a notice of foreclosure on a mortgage or |
| departments or persons regulating banks, trust | | | | deed of trust of a residential property cannot be filed |
| companies, savings and loan associations, credit unions, | | | | until 90 days after default or 45 days after a notice of |
| or insurance companies, if the person performs | | | | intent to foreclose is sent, whichever is later. The |
| services as part of their ordinary course of business. | | | | foreclosure process is instituted by the lender through |
| For more information on the Act, please visit the State | | | | the courts. The typical foreclosure action takes 46 |
| of Maryland website. The act was enacted to protect | | | | days. |
| homeowners from crooks who prey on distressed | | | | The lender must file a complaint in court against the |
| homeowners and try and take advantage of the | | | | borrower stating that there has been a default, and |
| homeowner by charging fees for services that are not | | | | obtain a decree of sale from the court that has |
| performed or excessive upfront fees. | | | | jurisdiction based upon where the property is located. |
| Maryland Foreclosure Help | | | | The court will determine the amount owed to the |
| In order to avoid the foreclosure process, Maryland | | | | lender and set a time limit in which the borrower has to |
| homeowners can get help from the following | | | | pay the sum owed. If the sum is not paid by that time |
| organizations or private companies: | | | | period, then the court will set a sale date. |
| · MDHope.org. is part of the Maryland | | | | One thing that is different about the foreclosure |
| Department of Housing & Community | | | | process in Maryland compared to other states is that |
| Development. They offer counseling services and | | | | prior to the sale date, the lender does not have to |
| refinance programs to Maryland homeowners for up | | | | notify the borrower that a foreclosure action has been |
| to $15,000 for short gap loans as a result of financial | | | | filed against the borrower. Most states require that the |
| difficulties. | | | | complaint be served upon the borrower and all |
| · FHA Secure program is part of HUD. This is | | | | interested parties and that the borrower is allowed a |
| a national program that gives homeowners who do | | | | statutory time period in which to respond. |
| not have FHA financing or who have adjustable rate | | | | Notice of Sale and Auction |
| mortgages an opportunity to refinance. | | | | The notice of sale must be published in a newspaper |
| · Maryland State Bar Association. Offers | | | | in the county where the property is located for three |
| answers to homeowners who are facing foreclosure | | | | consecutive weeks. The trustee must send notice to |
| and refers attorneys who are foreclosure defense | | | | the borrower and all interested parties at least 10 days |
| experts. | | | | prior to the sale/auction. The property will then be sold |
| · Maryland Foreclosure Defense Attorneys are | | | | at an auction to the highest bidder. |
| the only legally qualified persons authorized to | | | | The sale is conducted by an auctioneer at the |
| represent borrowers to assist them with legal | | | | courthouse steps and the highest bidder is awarded |
| defenses against foreclosure in court proceedings. | | | | the property. After the sale, a notice is published in the |
| They can conduct a forensic loan audit to determine if | | | | newspaper in the county where the property is |
| there have been any predatory loan practices also in | | | | located giving all interested parties 30 days in which to |
| order to rescind the loan, and are able to recommend | | | | object to the sale. If there are no objections after the |
| other options to borrowers to save their homes from | | | | 30 day period, then the property is awarded to the |
| foreclosure. They are also qualified to assist the | | | | new buyer and title is transferred. If no one bids at the |
| borrower with negotiating a mortgage modification. | | | | auction, then the bank will acquire back the property |
| · Private Mortgage Modification Companies | | | | and it becomes an REO (real estate owned) property. |
| can help homeowners negotiate a mortgage | | | | Redemption Periods |
| modification with their lender for a fee to save their | | | | There are no statutory redemption periods for the |
| home from foreclosure. | | | | borrower in Maryland. The court can set one if they so |
| · Mortgage Brokers are able to help borrowers | | | | desire. |
| with refinancing options and mortgage modification | | | | |